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with a republican plan in the next couple of minutes. neil cavuto will have that coming. again see you tonight for the fox report. right now time for cavute. >> neil: up against a deadline that is looking dicey, a default that is not. fox on top of a disaster that might not be on tap. house speaker minutes away. saying financial armageddon is not about to go down. welcome i'm neil cavuto. hard to predict what he's going to say. let's say the markets are not too worried. stocks down far from meing down as we are eight days away from where the president insists the country could be defaulting. what do you make of the default or not?
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>> i could tell you that the fox news network has been reporting all morning that white house officials are telling the banks, privately, forget publicly, even if the debt cap isn't raised, they are not going to default. they are going to pay the debt out of what they have, which is two trillion of tax revenues, 200 billion dollars of debt interest payments they have to make. they are going to prioritize and they are going to prevent fiscal disaster. >> neil: different from what they are saying publicly. scaring the you know what out of people. >> i can only assume, i can't get in their brain cells, geithner or the president's brain cells. seems like they are trying to force the markets to react and force john boehner to accept their deal. we'll see. >> neil: if you wanted to force the market, wouldn't you say this is going to be bad, we are going to default? >> that's what they are saying. but they are telling the banks,
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don't wore they are not. >> neil: they know you are -- they know you are sniffing around to report that. >> i can tell you what they are saying privately many using that "d" word all weekend for a reason. the president said it friday when he and boehner had broken up. the guyer used it during the sunday morning shows. i was on one. -- before i on he was talking about default. >> neil: what constitutes default? >> if you don't make one payment you've defaulted. if that happens, we have a real problem. everything is priced off the u.s. treasury bond. it is, -- if the u.s. treasury isn't money good what makes you think debt issued by a corporation is money good? >> neil: i'm just trying to think wayne. >> i'm never going to tell you. >> neil: neither side talking to the other now.
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there's a plan on the table to lay the day of reckoning. republicans want to keep a short leash on this to the end of this year. democrats led by harry reid with the blessing of the president something that would take us to the end of next year. will it be settled somewhere in the middle? >> probably. i think there's a good chance that we're not going to raise the debt ceiling by august 2nd. i think it is a really good chance. 80% chance that even if we do raise the debt ceiling we are going to get a down grey. u.s. is no longer -- downgrade. the u.s. is no longer going to get a aa been. >> neil: do you think the credit ratings agencies have locked themselves into a corner where they have no choice? >> also they come up with four trillion in savings and cuts none of these plans are talking about four trillion. >> neil: and the trillions they are talking about is baked into the cake with iraq
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and afghanistan. >> if i was a betting guy, they have to downgrade. >> neil: interesting. the pressure is on this gentlemen, john boehner, reacting to the president signing onboard harry reid's plan. >> our members have a two-step approach, cutting, spending and avoiding an economic collapse as a result of a default. we believe it is a responsible common sense plan that meets our obligations to the american people. and preserves the full, faith and credit of the united states government. this legislation reflects a bipartisan negotiation over the weekend. with our colleagues in the senate. as a result, of this bipartisan negotiation, i would call this plan less than perfect. but, it does ensure that the spending cuts will be greater than the hike in the debt limit. secondly, there are no tax increases that are part of this plan.
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it is not cut, cap and balance, but it is built on the principles of cut, cap and balance, that can pass the united states senate, as well as the united states house. time is running short. i'm urging my house colleagues to support and my senate colleagues as well. i think it would be irresponsible for the president to veto such legislation, because it is a common sense plan. and will help us avoid default. it is time to get serious about solving america's blowns. i brief our plan is a good cash america's problems. and i believe our plan is a good step in the right direction. >> plan we just introduced is a well thought out and reasoned plan in which no side gets all they want. we put out our plan as to what it is we want. the cut, cap and balance plan last week. this plan is not that. the president said that he
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wants higher taxes and he wants a vote through the election. this plan doesn't have that in it. so, it is a situation where no side gets all they want this is a responsible plan that addresses the urgency of trying to make sure we avoid default, which i knee we will. but then, it sets -- i know we will. but then, it sets in motion a process for real cuts so we can live up to our obligation to the people that sent us here. >> as you heard from the speaker and the leader, this plan is not perfect. it shows a great contrast to what the president has laid out. the president continues to pick politics over people. his only concern when you listen to him, he brings up the election. we are more concerned about the policies and where this country is going. the plan today is one that the speaker sat down with the other side of the aisle in the senate. it is one that we've worked
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together that would make current cuts, put some caps in for long term, to put us on the right path. it bringing up the argument where the republicans are here wanting a balanced budget, the opportunity to have it. i think what has to transpire now is the president has to change his ways. the president has to start putting people before politics. >> july 25th, many things have not changed. over 800 days in the senate unharry reid have yet to pass a budget. -- under harry reid, have yet to pass a budget. they've yet to pass a plan to deal with the debt crisis, much less one before august 2nd. the president of the united states has yet to put forward a plan and can only make it more clear that what he's focused upon is the next election. what is also clear is that only house republicans have passed a plan to deal with the
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debt ceiling. and although this is not, as the speaker said, our version of cut, cap and balance, what is also true is that house republicans remain firmly committed to cutting spending now, capping spending in the future and having the debate that has raged on since the dawn of the republic that is to finally balance the budget. because if we want jobs and hope and opportunity, we are going to have to cut and we have to cap and ultimately, we will have to balance the budget. >> last week -- >> neil: republicans now with their response to the reid plan. they are calling for more cuts. but something that could be carrying us through the end of the year not next year that is a debt increase in the limit that would carry us to the end of the year not as democrats wish through the end of next year, pass the election. therein lies the rub and
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debate who is cutting more. we have senator pat toomey of pennsylvania. senator, what does your gut tell you now? >> well, i think charlie was right. first, there is no scenario in which we were ever going to default on our debt, i've been saying that since january. it was true then, it is true now. the only difference is the administration is privately admitting it is true. the other fact is that the more important challenge that we taste not whether we raise the debt limit by august 2nd, it is whether we solve the underlying fiscal problem we have. if we raise the debt limit without addressing that huge spending problem driving our deficits we will probably be downgraded. frankly, that's appalling to me that the u.s. government could be in this position. >> neil: there are those who say that is already baked into the financial cake that a downgrade is inevitable. that things have gotten so bad, so fast that the agencies might not wait until august
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2nd, to do that. >> that's a real possibility. they've may it clear. they've said unless we demonstrate the ability to change the trajectory and stabilize our debt as a per teenage of gdp they will downgrade us. i'm concerned we might end up backing into some kind of deal that does not stabilize debt as a percentage of gdp. that does not put us on a path to a balanced budget. because the president's adamantly opposed to a balanced budget. if we don't solve the underlying problem i'm afraid there will be a downgrade. >> neil: does it trouble you when you hear, folks like yourself and tea party sympathizers if not tea partiers outright are labeled whack jobs. this comes from harry reid today. listen to this. >> we should not let these extremists dictate the outcome of this debate the time for ideological extremism should end. and they've got to break away
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from those extremists. >> neil: what do you think of that? >> i guess someone did a poll and told him he should use the word extreme seven, eight times in every sentence. the problem with that logic that harry reid is discussing is that by his measure, bill clinton was a radical right wing extremist. because clinton, when we were facing sip circumstances, except much less debt, bill clinton embraced the idea of putting up on a path to a balanced budget. the only argument he with republicans is how quickly we could get there. because he and the republicans in congress did work towards a balanced budget they accomplished it. that's why it is so shocking to me that we have an administration, we have democrats, like harry reid, not all democrats, but certainly, senator reid, that are so far outside of the main dream they think it is radical to want to even get on a path to a balanced budget several years from now. it is disappointing.
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>> neil: senator, thank you very much. we'll monitor closely. republican leadership has now wrapped up its discussions in the house. we'll keep you posted. bottom line is they've finished. said their offer is on the take calls for steeper cuts they argue and keeps the government on a shorter leash that guess through the end of the year not the end of next year. -- that goes through the end of the year not the end of next year. can youing the deficit by 2.7 trillion has the president supporting that. chris turner in washington on of that. what do you make of where this battle stands? >> what i'm struck by first is that when you know -- i've been covering capitol hill for 10 years. when you know that there's a problem, that's when you see members from both sides out in front of the microphones, telling us what is going on. lots of finger-pointing that is never a good thing. >> neil: what does your gut tell you? you hear folks saying that the
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august 2nd, deadline doesn't look doable. do you agree? >> i have to say at this point, i don't. it is only monday i know that may sound a little extreme, like last minute. congress does nothing if not on a deadline. i think our predictions still stands. there's going to be some sort of short term extension. they are just battling out dates now. short term extension of the debt ceiling increase. an increase maybe of a trillion, maybe a little more. they are going to duke it out. both seem to agree, there needs to be a committee set up. 12 members bipartisan bicameral that is going to find safeties down the road a lot of people are skeptical, senator toomey is one, whether that is going to be savings that results to -- comes to true work in the end, i should say. >> neil: we should explain when we try to time how long an extension is based on the
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dollar amount, it is rough. but the rough math for the republican plan is trillion dollar increase carries you through the end of the year. the democratic plan led by harry reid now backed by the president 2.7 trillion carries you through the end of next year. democrats would rather this be our -- republicans would prefer before next year's election. where do we stand on the likelihood of getting this done before -- getting this extended before the election? >> i think the likelihood is pretty . -- pretty good if you look before this ed over the weekend. we had senator reid sitting down with senator mcconnell agreeing to a multi-step approach. house republicans kind of -- they were a little confused at first. house republicans said we are not going to accept that plan. they never said they would vote no.
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i do think the makings of a compromise are here to do something short of the 2012 election but it is really unclear. both sides are still going to duke it out. seems like they are heading toward what seems to be political votes. neither is going to pass in the other chamber. it is not clear if senator reid can get the 60 votes he needs to get his plan out of senate. >> neil: thank goodness you are there to clear it up. thank you again. >> neil: you want to know why you see all of these people cheering? they just found out that we are on top of this. that we are going to be live from washington, d.c. covering every angle of this debt fight and not giving up. it all kicks off friday 4 p.m. eastern on the fox news channel. then saturday round two of
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this budget brawl, two hours, live coverage from inside the nation's capital. kicks off 10 a.m. eastern time, we are there following your money. as i always say we are not red, blue, we are green, following your money. these guys are controlling a lot of it. we are on it and on them, so watch us. >> another 2,000 people are about to lose their jobs. the latest to hand out pink slips as america's economy slips deep near the red. steve moore worries this could get worse. -- how much worse steve? >> by the way, can i back up on this debt fight many it is so intrigue wag is going on. i want to say one thing that i -- one thing i find interesting the most important development is harry reid appears to have put together a budget, 2.7 trillion of budget savings, those are probably phony but here the important thing, no tax increases this is a big development in this budget story.
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[ talking over each other ] >> neil: you are making the assumption that there isn't an add-oncoming. you are right, the deal itself, [ talking over each other ] >> neil: don't jump the again. more than a trillion coming out of the wars. republicans have factored in that math as well. do you think given your point of view, that others will jump onboard of as the best thing out there? >> i think this is the basis for a deal. we have to jiggle the numbers, you are right. a lot of numbers in reid's budget proposal are phony. i think it is significant. weeks ago, harry reid put forward a budget with two trillion of tax increases, now he's at zero, that's a big deal. >> neil: we've been mentioning the markets and how they've held on.
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is that because they are factoring in a deal at the last minute or that they are okay, no matter what happens? >> i think the market has come to the perception we will have a deal. i think we are going to get a deal within 48 hours of august 2nd. if we don't get that deal before august 2nd, here's my bet, you can take me up on this, if we go past august 2nd, it will not last more than one or two days. i do think a deal is coming. the fact that harry reid is taking taxes off the table is a very significant development in this budget fight. and it makes a deal between the republicans and democrats much more probable. >> neil: in the face of an economy that seems to be losing momentum. big companies are announcing big lay-offs. big blackberry maker, there have been others.
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are you worried about a double dip and how that complicates things? >> yeah, yeah. it sure does. if we go a double dip, if you asked me that question three weeks ago, a month ago, i would have said no w he -- we are not going to have a double dip. now speed bump that obama call it, looks to be a ditch those numbers, companies like cisco, blackberry, laying off workers. that's a really bad sign. it suggests we may be headed to a double dip. here's the problem if we do hit a double dip on this economy, it doesn't matter what they do on the debt deal. the deficit is going way up again. we could hit a two trillion dollar deficit if we hit a double dip recession because we won't get the revenues that you need people are -- you need when people are working. >> neil: very good to see you
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again. steve moore, in pennsylvania. >> we default it is armageddon. the presidential candidate who says if we don't default it is real armageddon. thanks to the venture card from capital one,
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>> neil: you might not tie it directly to the debt taxes or the lack of them, gold hit a record of over $1600 an ounce. up almost $11. typically when folks are getting nervous they park in precious metal, less so in stocks. stock market down 88 points. down but not melt done. normer new mexico governor -- governor johnson says it would
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be greater if we keep kicking the can down the road. governor good to have you. >> great to be on. the opportunity here is to stop printing money. i would not raise the debt ceiling. for all the chaos that will ensue, all the problems that will go along with this, i don't want to minimize that. that is something we could deal with now as opposed to later. i'm in the camp that believes we are going to have a monetary collapse. that will be the bond market that collapses, because there's no repaying 14 trillion in debt, given our current deficit. this year, last year, the year before, years going forward. >> neil: you say there's greater hell to pay, passing the buck than not? >> i think it could be a situation we are going to not be in control. >> neil: can you get an extension then resolve to fix this? >> been there, done that how many times have we've seen
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that played out? this is the last time we are going to raise the debt ceiling. i can't tell you how many times i've seen that play out. republicans control the house. republicans may not control anything in the future this is certainty the certainty s we could actually bring in to bear now. stop printing money and deal with the balanced budget now. as opposed to what i just think will be calamitous down the road. >> it would be calamitous, as you say, if we -- >> now, yeah. >> argument is interest rates could raise. things could get messy habit for quite a while. do you still say that would be preferable than the alternative? >> i think the markets are ahead of all of us. certainly, a lot of this has to be discounted into it. >> neil: if they have this factored in -- >> first of all, we're not going to default on paying back interest on the debt. event of a downgrade, right? >> i don't think the markets
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have factored that in or have they? >> who is to say? i go back to 2008, when the market deposited 800 points and all this conjecture over well congress failed to act. >> neil: you are talking about the first time congress rejected tarp. >> right >> neil: the market could lead this again. >> sure. but i happened. if that were the end all, if that were the fix the markets would have recovered 800 points immediately and they didn't. like i say, markets are one thing. certainty is another. here's a chance for politician to create certainty. a sound monetary system. >> neil: you argue we are probably not deserving that aaa rating, right? >> we've been talking about this for years this is a downgrade that should happen, will happen. recent statistics, the federal
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reserve was buying up to 70% of our own debt. you know, borrowing is one thing. printing money is another thing. we're printing money that's what we all need to recognize. when it goes to 100% presenting money to buy up our own -- printing money to buy up our own debt that's the monetary collapse. >> neil: the argument for doing something like this, not withstanding it is hard to put the gene any back in the bottle, is -- the genie back in the bottle is we will be forced to be disciplined, you buy that? >> let's force it now. let's not raise the debt ceiling. let's deal with this, as difficult as it is going to be. i don't want to downplay how difficult it is going to be. >> neil: even if it means raising taxes? >> i don't think it is a matter of raising taxes. i would not advocate raising taxes. i'm advocating on the side of the fair tax eliminate business to business tax.
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eliminate corporate tax. i think it reboots the computer and the american economy for decades of real growth. back to fair tax. eliminate income tax, eliminate the irs, one federal consumption tax. simplify fair, encourage savings. >> neil: good stuff. governor good to see you again. >> thank you for having me. >> neil: if boehner gets the deal he wants will the speaker be on speaking terps with tea party republicans?
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lifelock service guarantee cannot be offered to residents of new york. >> neil: just getting wore the president will address the nation tonight at 9 p.m. eastern time for 15 minutes we are told on this debt limit impasse and what progress is being made and not may. likely john boehner will respond after that here's what we know, fox news channel and fox business network will carry that address and maybe those addresses live. i'll be doing the honors for fox business network. which i stress and everyone in washington likes to remind if you do not get fbn -- [ demand it ] >> neil: what do you any? >> the interesting thing is john boehner the speaker of the house came out before the cameras, talked about his plan. he said it was not perfect. what it reflects the tennents
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of the cut, cap and balance plan which passed overwhelming through the house of representatives last week past item of hours since we've gotten the tenent of this i've heard intense opposition the bloc of the most conservative members in the house of representatives. jim jordan the chairman of the republican committee said he has a real problem with the balanced budget amendment here this plan just requires a vet on the balanced budget amendment. not as in cut, cap and balance which would require it to be passed through the house and the senate first, before they raise the debt limit. the republican freshman from kansas just put out a statement mere about in commission, putting together this new -- joint committee between the house and senate says we don't neat deficit commission 18.0. we don't need to cut in 10 years, we need to cut now. there's intense opposition among -- >> neil: if you are a ratings
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agency s&p and moody's, is this going to be any more calming or is it going to have you pull the trigger and downgrade now? >> i think when you have a plan. at least the idea of a couple of concrete plans the harry reid plan, the boehner plan in the house that might calm people down that is a question that some have been asking. the republican freshman from michigan raised that point. he said what if we have a plan, we pass something and get downgraded any way? that was something we heard last week from the rating agencies people. huizenga says we don't want the good to be the enemy of the perfect. or the perfect to be the enemy of the god. the question is, is this good enough? further s in good enough for the ratings agencies. >> neil: thank you. meanwhile, to a tea party congressman on what he will and will not accept. with me louisiana congressman
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jeff landry. congressman, you heard what the speaker outlined as a way to get in ball moved forward. are you onboard? >> well, i'm certainly not onboard yet. two things, one i comment the speaker for moving the discussion back to where it belongs n congress, not in the white house. number two, i certainly applaud him for keeping in context the cut, cap and balance bill. i believe that cut, cap and balance is the problem vehicle. it is the one we need. i believe it is one that the rating agencies would look for and applaud and not downgrade us. >> neil: congressman, even if you were to get cut, cap and balance through the house, which i think is fairly doable in the senate, it is still going to run into a brick wall. we are not getting past go. >> look, i'm here when people said i wouldn't be here. i don't think no or an option to fail for granted.
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i believe we can accomplish anything. i don't understand what the problem is in the senate. they haven't done a thing. they haven't passed a budget in 800 days. they've done nothing. it is time for harry reid to ask himself a question as to whether he's going to do the bidding of the democratic party and this administration or whether he's going to do what is right for the american people? 22 democratic senators have in the past supported a balanced budget amendment. why can't we get that? >> neil: you mentioned geraldo rivera. his proposal has the backing -- you mentioned harry reid, his proposal has the backing of president. that is, 2.7 trillion cost cutting plan. that calls for no tax increases, doesn't touch entitlements, carries us through the end of next year on paper. the devil as you remind is in the details. but on paper, could you live with that? >> look i don't live with anything until it is written
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in a bill. that's what brought us obamacare. that's what brought me here. i'm not interested in giving support to anything until i see the bill, have a chance to review it. i'm not interested in fuzzy that's what they use around here. they play with indexes and they create savings. we need real cuts, real caps and put a lock and chain on this congress to balance the nation's budget. >> neil: great pleasure having you. i know these are tough times for all of you guys. we are watching. stay well. >> thank you. >> neil: what is going to happen a week from tomorrow if there is no deal, no matter what the president says? >> if we didn't achieve stability, our world is headed for disaster!
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>> neil: you probably her the world is going to end. we are going to try to provide a little perspective. starting friday we will be in washington, d.c. to start the process, 4 p.m. on fox news, 6 p.m. on fox business network. saturday we are back, 10 a.m. a special culture freedom dis-- too many more to mention. suffice it to say we are there. also tonight, when the president addresses the country on fox business network. i'm a utility player. i'm here for you. >> the president says spending cuts alone will not do it. is he about to go it alone and just raise it?
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lis wiehl versus mercedes cohen on the constitutional wild card that could be imminent.
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with webos. >> neil: already, the president is going to be addressing the country again tonight, 9 p.m. eastern time. we'll be covering this on fox business network. here's the added been fit, saying nothing bad about catching it on fox news, we get the early foreign market reaction like asia and other crucial markets. if they are buying what the president says you will see that, if they are not, you will that too. which bret baier will not be able to give you on fox news. i'm kidding. in the meantime, if there is no deal here, the constitution's 14th amendment basically guarantees america's credit worthiness when it says the validity of the public debt of the united states shall not be questioned. now many are questioning whether that does give the
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president the right to bypass congress and lift the debt ceiling himself. president clinton said that's what the president should do. mercedes cohen says it does. lis wiehl not so amenable to that. mercedes, you think he does have the power, why? >> there's historical precedent. lincoln did that during the civil war. extended habeas corpus for the debt not to go into default. we are dealing with the president, congress is not doing anything i have to step in the constitution, 14th amendment says specifically that there has to be credit worthiness. otherwise we will default. we will go into a recession obviously, possibly depression. back roosevelt said specifically he warned congress. if we can't make this move i have to step in during a similar economic crisis and do something about it. >> neil: you are shaking your head. >> i'm sorry, and live you, but you are wrong.
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the constitution does not allow for unilateral spending by president without lawful kong -- lawful authority that's congress. it says congress has the power to spend and only congress has the power to authorize. without that the president cannot go in. >> neil: it is up to judge's to go back and forth on that the president really would be effectively buying time by which time the judge -- they've already settled it. >> he would be doing something i believe would be unconstitutional. he could do it, then it gets punt today to the courts. >> neil: how long would that take? >> weeks, could be months. >> neil: months they would resolve this on their own. >> certainly it would be better than what we are facing august 2nd. >> all the lawyers, obama's own lawyers have said this argument has no merit.
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if he can't convince his own lawyers to go ahead with this howg can he convince -- >> neil: aren't these the same lawyers that dealt with health care? >> that's my point. all of these clauses i would say twisted to get legislation passed like the healthcare bill. >> neil: if we went your way, don't you think it is too late and add a potential constitutional crisis? >> not necessary. you are right the courts would step in. obviously there would be the nation saying we have to test the credibility the constitutionality of what you have done. and it will go through the court system and it will be resolved. when you look at the constitution there has been this precedent before. as i said, lincoln did something similar. when you have the 14th amendment -- >> habeas corpus had to do with people's fundamental rights to appeal decisions while in prison that has
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nothing to do with clearing the debt, which is what we are talking about. >> neil: the president knows he would be on shakey . i've heard many argue your point mercedes. i think, he says it would be a means to an end and they could resolve this afterwards. you argue lis the damage -- i'm not a lawyer, i've watched l.a. law. you are saying that the damage would be done already. >> it would be. [ talking over each other ] >> we are going to play with the contusion, bring the courts into where they shouldn't be this is a congressional money issue. . >> you have a stalemate. you have congress -- [ talking over each other ] >> you've got a safety net. what is better for this country -- [ talking over each other ] >> neil: you really want to rattle markets, you get the president possibly toying with the constitution. validly or not, it is a mess. >> it is looking like a ruse
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to twist the constitution in a way that it wasn't meant to be. lawyers don't even want him to do that to buy the time. >> neil: the president is addressing the nation in a little over four hours from now. we'll be monitoring. i've agreed to do don imus' show a little after 6:30 tomorrow morning. i should have thought that through ahead of knowing i would be covering the president's address. any way, democrats want a longer extension of the debt ceiling, republicans a shorter one. forget the details, focus on who wins the delay. 3q double shift... i need a break.
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he needs some gellin'. yeahhhhhhh. gellin' is like having a teeny tiny foot masseuse in your shoe. you like ? nice ! dr. scholl's massaging gel insoles. outrageous comfort, all-day long.
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>> neil: a guy i've admired for a long time thought this would be an easy first day at fox news.
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ed henry has found out that is not necessarily the case. edang5y, look what you've done. you've got us in the middle of a possible constitution crisis, the president addressing the nation tonight, maybe john boehner following. credit markets at loggerheads, wall street all over the market, way to go ed. >> it has been perfect. the stakes are enormous for the president tonight. some of his aides are saying he's not going to have any new plan today. what he's going to do is try to layout thekh and try to end this stalemate. we have a preview what is the president is going to say earlier, when he spoke to the national council of la raza. he went on offense, saying i'm making sacrifices, republicans won't budge on taxes. >> the president: it may sound good to save say lot over the next five years, not if we sacrifice our future for the next 50. that's why people from both parties have said the best way
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to take on our deficit is with a balanced approach. one where the wealthiest americans and big corporations pay their fair share too. >> reporter: the white house puts it weight today behind a plan by harry reid that would have about 2 1/2 trillion in cuts. when you talk to people in both parties they say it didn't look like it has the votes. that plan looks stalled. house speaker boehner, as you've been noting, laid out a plan of his own of 1.2 trillion in cuts. it didn't sound like he is sold on this plan. >> this legislation reflects a bipartisan negotiation over the weekend. with our colleagues in the senate. as a result, of this bipartisan negotiation, i would call this plan less than perfect. >> reporter: i spoke to two senior aides who told me the
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stakes are enormous. if there is a default it would be in the words of these aides, mutually assured destruct for both parties because it is going to be washington paralysis and the american people will take it out on both of them. there are republicans on the hill who say the american people want them to hang tough for more spending cuts and they are not giving in. that's why it is a tough battle for the president to sell this >> neil: we'll watch. ed, welcome aboard again. get ready for the right. ed henry, good to have you. we are hearing from a republican who doesn't like either plan and says each invites a downgrade. host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam
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i got this straight. liberals holding their party captive to more spending, fine. tea partiers holding their party to holding their party to spending, not fine. republicans considering a shorter debt extension until the end of this year to keep the heat on washington to resolve this bad. democrats pushing a longer-debt extension until the end of next year, after the election, to keep the heat off the president, good. no, not good. not good. not even right. the tea partiers aren't holding this process hostage. big spenders in washington are. a compliant and complicit media is. so tea partiers are nuts for saying this spending charade won't go on. democrats advocating continuing the charade are nuts so the spending will go on. come on, who is zooming here? tea partiers reminding washington it's the spending, stupid, or those hoisting more spending and just calling the tea partiers stupid.
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no, what stupid is doing more of the same and just calling that sane. what's stupid is criticizing those who have had enough of kicking the can down the road and then have the nerve to kick their can in the media. what is stupid, is hanging a potential fiscal collapse on those who saw this coming years ago, and suddenly pending a possible ratings downgrade on them if it happens next week, there's weak. just like it is weak when democrats call tea partiers crazy for even considering not raising the debt limit even though every major democrat did just that back in 2006 when another president was urging them to raise the debt limit. so senator barack obama voting against raising the limit then, not politics. tea partiers urging the same now, absolutely politics. absolutely asa9. the business as usual crowd refusing to see through their
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own arrogance and hypocrisy, holding the nation hostage. they're holding something else hostage too -- the truth. that's fair, that's balance. that's right. now the president is willing to make his case yet again to the american people. a 15-minute address scheduled for tonight. i'll be on it on fbn. catch it on that network, as the only network around to give you foreign market reaction as he's speaking, because keep in mind the asian markets will be open for early trading. so we might get our first gauge on how foreign markets are interpreting what's going on in this country, a country we are told could be on the verge of a ratings downgrade. that could either be seen as something historic or no big event, a lesson in the scheme of things. we're on it. you watch it. a big night of activity that will continue throughout the week when we're live in wahi

Your World With Neil Cavuto
FOX News July 25, 2011 1:00pm-2:00pm PDT

News/Business. Money tips from Wall Street. New. (CC)

TOPIC FREQUENCY Harry Reid 14, Washington 8, John Boehner 5, U.s. 5, America 4, Boehner 4, Reid 3, Bill Clinton 2, Steve Moore 2, Norisk 2, United States 2, Obama 2, Gellin 2, Neil Cavuto 2, Clinton 2, D.c. 2, Pennsylvania 2, S&p 1, Fbn 1, Moody 's 1
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